Spanish mortgage debt process

Hi. Can someone please explain the process on spain on how a debt is crystallised on repossession and how amount is calculated. Thanks

They send to you a notice after three monthly defaults after which, litigation starts.

The procedure in Courts needs to be duly notified to you at the address you agreed as relevant for notifications on the mortgage deed.

This notification enables you to deffend your position that, even when limited for this type of procedures ( recently enlarged due to European requirements), is still possible.

I always advise clients to answer the repossession with a dation counteroffer in order to  reach an agreement with the bank to have the whole debt  settled after the auction.  Of course the difficulty of this varies depending on the equity you have on the house.

As you know the way the Bank has to obtain  liquid value out of the house is through public auction after which, if no one bids, the bank can keep it for no lower than 70% of the price ( for first residences) and 50% ( for second residencies) that the house when  it was valuated for mortgage purposes ( this value is contained in mortgage deds and it is the sum of borrowed capital+ interests+ legal expenses)

Never leave a repossession order unattended as there is also the risk of the Bank applying for the issuing of an european enforcement order against your assets in the UK.

Please let me know if you have further questions,

Thank you Maria. I want to understand this. If the bank takes ownership is it at that point a shortfall can be created or does it take place once they sell it on? Thanks

Rules below are to be applied when a Bank takes ownership of a property within a repossession procedure, when no one bids at the auction.
 

So if they show as 100% owners on the nota simple. The debt has been crystallised?

We, lawyers, are always reluctant to state things, without seeing the documents ( I woukd like to see it ;), but....if checking the title ( auction) an date of that ownership registration... possibly yes.

Please send the document to me.

Hi Maria what's your ema addresses and I will send you the nota simple recently obtained which shows bank as owner

Are your properties being repossessed by the Bank?

After recent Court decission by the European Court, possibilities to oppose an enforcement procedure if the anticipated maturity clause was included in your Notary deeds are much higher

Also, depending on value given to the property for auctions, a settlement with the Bank is possible. There are also other abusive clauses playing now much in your favour if a repossession is started

https://www.costaluzlawyers.es/2019/04/04/new-cjeu-sentence-to-favour-mortgage-holders-in-spain/

https://www.costaluzlawyers.es/2018/10/19/european-union-comission-on-irph-clause/